- Explain the nature of unilateral mistake and what is needed for it to be
operative. Remember the requirement that one party has made a
fundamental false assumption and the other is aware of this. - Explain the difference between inter absentes and inter praesentes
situations and identify that this is an example of the second situation. - Explain that an apparent mistake over identity may be seen as one of
creditworthiness and will often leave the contract intact. - Explain the situation of the third party who has possession of the
goods, in this case the violin. - Relate the details of the chain of relevant cases – Phillips v Brooks,
Ingram v Little, Lewis v Averay. - Apply this knowledge to the facts of the case and form some conclusion
over the likely outcome.
Question 2
In this problem question the issue centres on common mistake. Two
incidents invite discussion: the purchase of a painting which turns out to be
worth less than the amount paid, and the purchase of a chair which turns
out to be worth more than the amount paid.- As with Question 1 (above), you can explain, generally, the issue of
mistake, but do not waste time on other types of mistake. Remember
that this is where both parties are in agreement, but both have made the
same false assumption. - Differentiate between mistakes which concern the existence of the
subject matter (Couturier v Hastie, Galloway v Galloway, Scott v
Coulson), and those which concern the quality of the subject matter
(Bell v Lever Bros, Leaf v International Galleries, Associated Japanese
Bank Ltd v Credit du Nord, William Sindall v Cambridgeshire County
Council). Consider especially Leaf, as it is particularly relevant to the
facts of the problem. - Examine both of these areas, relating them to the facts of the problem.
Remember that Adrian will probably want a remedy in respect of the
painting, but will not wish to take the chair back – can, or should, the
law deal satisfactorily with both situations? - Consider an alternative way of resolving the case – McRae v
Commonwealth Disposals Commission.
Question 3- Explain that there may be a mistake and/or a misrepresentation. Outline
briefly the operation or both of these and explain that if Pauline cannot
be found then a finding of misrepresentation by the court is not very
helpful.
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